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1cjdollar
New Member

Why is my sales tax deduction lower in 2024 than 2023? I made more money in 2024 and, with inflation, paid more in sales taxes.

 
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3 Replies
rjs
Level 15
Level 15

Why is my sales tax deduction lower in 2024 than 2023? I made more money in 2024 and, with inflation, paid more in sales taxes.

Was the there a reduction in the sales tax rate, or did the state exclude some items from sales tax? The IRS sales tax tables take into consideration what items are taxable, and the mix of taxable and non-taxable items that a typical person buys. If you really want to pursue it, compare the 2024 sales tax table for your state to the 2023 table. The sales tax tables are in the IRS instructions for Schedule A for each year.


Instructions for Schedule A - 2023


Instructions for Schedule A - 2024

 

1cjdollar
New Member

Why is my sales tax deduction lower in 2024 than 2023? I made more money in 2024 and, with inflation, paid more in sales taxes.

The sales tax deduction calculator in Schedule A has not been updated to Tax Year 2024.  It will only accept up to 2023.  I don't think TurboTax can fix that issue.  The IRS would have to correct it.  I don't know how to alert them to the issue.  I guess I could just use my 2024 AGI with the 2023 calculator presuming that the calculation factors have not changed for 2024??

rjs
Level 15
Level 15

Why is my sales tax deduction lower in 2024 than 2023? I made more money in 2024 and, with inflation, paid more in sales taxes.

There is no "sales tax deduction calculator in Schedule A." I think you are referring to the Sales Tax Deduction Calculator on the IRS web site. You don't have to use that calculator at all. TurboTax will do the calculations for you, and it will use the 2024 rates. Just use the EasyGuide in the Sales Tax topic in TurboTax.

 

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